The Equal Pay Act of 1963 (EPA), an amendment to the Fair Labor Standards Act of 1938 (FLSA), prohibits sex-based wage discrimination between men and women in the same establishment who are performing under similar working conditions.
Who is Covered
The Equal Pay Act covers all employers subject to the Fair Labor Standards Act (FLSA) – all employers engaged in transporting or producing goods that travel across state lines – but its application is broader. For instance, unlike the FLSA, the EPA does apply to executive, administrative, and professional employees. Federal, state, and local government employees are also covered, unless specifically exempted under the FLSA.
Basic Provisions/Requirements
Under the EPA, compensation discrimination is prohibited on the basis of an employee’s sex. In other words, an employer cannot pay employees of one sex less than employees of the other sex for performing equal work, requiring equal skill, effort and responsibility, under similar conditions at the same establishment. The statute protects men as well as women.
This provision makes an exception, however, if there is a difference among employees based on factors other than sex. For example, it is not unlawful for employees to receive unequal pay if:
- A seniority system exists;
- A merit system exists;
- A system for measuring earnings by quantity or quality of production exists; or
- Any factor other than sex – for example, salary differentials that stem from unequal starting salaries because of difference in experience levels.